A report revealed that the recent Bitcoin price rally above $100,000 has created 14,211 new millionaires and four new billionaires, while also creating FOMO (fear of missing out) in people, who want to achieve similar success. However, the crypto market is extremely volatile and profitable trades can sometimes lead to huge losses. One of those who experienced this situation is PEPE $PEPE
There was a trader who made trades in his token based on FOMO and lost approximately $500,000.
AI-powered analytics platform Spotonchain has revealed that an anonymous trader suffered serious losses on his PEPE Coin investments. While profit and loss are quite common in crypto trading, some investors follow FOMO, and this can often lead to losses even when the asset being invested is profitable. This incident occurred with a trader known as “0x4ec” who spent 4.75 WBTC and 150K USDC (approximately $1.59 million) to buy 60,782B PEPE on December 10. At the time, the PEPE price was heading towards its peak, but shortly after the price made its ATH (all-time high), it started to decline amid increasing volatility. Fearing further losses, the trader was forced to sell his PEPE tokens at low prices, losing a total of $477,000.
PEPE had become one of the most demanded meme coins with its strong performance throughout the year. However, investors bought PEPE at its peak and suffered huge losses when the price fell due to volatility. After Bitcoin’s price reached record levels, the crypto market reached highs it had never seen before. However, after the FED’s 25 basis point interest rate cut and Jerome Powell’s statements about Bitcoin reserves, PEPE Coin and other cryptocurrencies began to have a hard time amid the market crash.
The PEPE price has fallen by 11% in the last 24 hours and is currently trading at $0.00001916. Looking at the weekly data, the PEPE price has lost 24% of its value. Its market cap is currently $8.05 billion, while its trading volume has fallen to $3.43 billion. Nansen Data shows that the number of smart money investors holding PEPE has decreased from 115 to 95 in the last two weeks, and smart money is starting to exit the market. However, many analysts are evaluating this as a widespread correction for meme coins and think that this could lead to bigger rallies in the future.
According to technical analysis, the RSI (Relative Strength Index) of the PEPE token has fallen below the 50 level, while the MACD (Moving Average Height) indicator also reveals the weight of sellers. This indicates that PEPE's downtrend may continue. If the price of PEPE breaks the key resistance at $ 0.00002821, an upward movement may begin. However, PEPE is currently trading at $ 0.00001916 and is 32% away from the ATH level. At this level, the market is still in great uncertainty, considering the loss experienced by the trader who lost approximately $ 500,000 when the price fell after purchasing the PEPE token due to FOMO.
As a result, PEPE price is facing a tough fight amid the general collapse in the crypto market and the ATH-driven volatility. The downtrend could continue until the price surpasses the key resistance at $0.00002821.